Parliament formally modified Hungary’s controversial advertising law on Wednesday. By a vote of 144 in favor to 50 opposed, the threshold over which the advertising tax must be paid was lowered from HUF 500 million (USD 1.77 million) to HUF 100 million (USD 353,870). A flat tax of 5.3 percent replaces the progressive tax rates.
The tax applies retroactively to 2014. Not known at this time is whether companies paying a higher rate of tax in 2014 will be entitled to a refund.
András Tállai, undersecretary at the Ministry of National Economy (pictured), told parliament that the Hungarian government felt the change justifiable despite the European Commission’s ongoing investigation into the tax, which many argue is unfair.
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